Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here are three stocks under $50 to pass on and some alternatives you should look into instead.
Zumiez (ZUMZ)
Share price: $14.29
With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ: ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.
Why Do We Pass on ZUMZ?
- Store closures demonstrate a defensive approach to eliminating underperforming locations
- Revenue base of $932.8 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- ROIC of 0.2% reflects management’s challenges in identifying attractive investment opportunities, and its decreasing returns suggest its historical profit centers are aging
Zumiez is trading at $14.29 per share, or 46.8x forward P/E. Dive into our free research report to see why there are better opportunities than ZUMZ.
Macy's (M)
Share price: $23.99
With a storied history that began with its 1858 founding, Macy’s (NYSE: M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Why Should You Sell M?
- Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Earnings per share have dipped by 10.7% annually over the past three years, which is concerning because stock prices follow EPS over the long term
Macy’s stock price of $23.99 implies a valuation ratio of 11.5x forward P/E. If you’re considering M for your portfolio, see our FREE research report to learn more.
Antero Resources (AR)
Share price: $39.94
Holding roughly 521,000 net acres across West Virginia, Ohio, and Pennsylvania, Antero Resources (NYSE: AR) drills and produces natural gas, natural gas liquids, and oil from underground rock formations in the Appalachian Basin.
Why Does AR Worry Us?
- Muted 6.5% annual revenue growth over the last five years shows its demand lagged behind its energy upstream and integrated energy peers
- Efficiency has decreased over the last five years as its EBITDA margin fell by 10.8 percentage points
At $39.94 per share, Antero Resources trades at 8.9x forward P/E. Check out our free in-depth research report to learn more about why AR doesn’t pass our bar.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
